Proof of Concept
To give an example of the inner workings, three songs have already been released through Block Label. They're some old tracks of mine, so the numbers aren't impressive. Here's what the statistics I receive looks like:
Block Label tokens have been created! You can see them here.
Since a token represents each track, the artist (me in this example) should receive three tokens. For the sake of the next examples I've sent them to three different addresses. You can see the transfers to each address here, here, and here.
E.g. if the token represents a song that was done with other band members, they can keep their share of the song/token. In this case there are three other band members.
When Block Label makes a profit, artists will receive payments via their tokens.
So, lets say the artists share of profits is 0.003 BTC (bitcoin).
Since Block Label has distributed 3 tokens, each token should receive 0.001 BTC.
Here's the transaction of that payment. On the right you can see:
- The top two addresses received 0.001 BTC; they have 1 token each.
- The next four addresses have the token that was split between band members; they received 0.00025 BTC
(The last address can be ignored as it's a return sum/balance of the sender. It's the same as the senders address on the left)
Hope this helps to give a better idea on the flow of things. Don't worry if all these transactions look or sound a bit strange. I still find them so, but it gets better. Give it some time and you'll get used to it.
As an artist it's important to think of these tokens as a contract and tool between you and Block Label. It's your proof of contribution and the way you'll receive future payments.